The sovereign fund of Turkey is analyzing the sale of the stake in Turkcell

Turkey's sovereign investment fund is analyzing whether to sell its 26.2% stake in Turkcell Iletisim Hizmetleri AS, the country's largest telecommunications operator, according to sources cited by Bloomberg.

Turkey Wealth Fund's (TWF) Board of Directors has yet to make a formal decision, the sources said, noting that while informal discussions have taken place with potential buyers, some representatives of the sovereign wealth fund oppose the sale because they consider the company a strategic asset. The final decision will probably be taken by Turkish President Recep Tayyip Erdogan, who heads the fund's Board of Directors, notes Bloomberg.

Investors from the Arabian Peninsula and Azerbaijan have expressed interest in acquiring a stake in the phone company, according to the sources, who add that the Fund has approached at least one investment bank for advice on a potential sale, but has not issued a mandate. official.

TWF and Turkcell declined to comment on the information published by Bloomberg. Turkcell shares rose 5.4% to 111.7 Turkish lira after the news was released last week. On Friday, on the Istanbul Stock Exchange, at 17.07 local time, the Turkcell share was worth 111.1 lira, a price 0.09% lower than the previous day. The level of 111.7 pounds was the highest reached since the company's IPO in 2000.

Turkcell shares are up more than 50% in dollar terms since TWF bought its stake in 2020, giving the company a market value of $7.3 billion.

LetterOne Investment Holdings, an investment firm founded by Russian billionaire Mikhail Fridman, owns a 19.8% stake in the phone company, and the rest of the shares are traded on Borsa Istanbul and in the form of depositary receipts on the New York Stock Exchange ( New York Stock Exchange), notes Bloomberg. When TWF bought the stake, it became the largest shareholder and won the right to appoint five of the nine members of Turkcell's Board of Directors.

Turkcell's main domestic competitors are Turk Telekomunikasyon AS and Vodafone Group Plc.

The Turkish government established the sovereign wealth fund in 2016 and mandated it to play a major role in making investments deemed too large for the private sector. The fund holds a number of assets taken over from the Turkish Treasury, including stakes in state-owned lenders Turkiye Halk Bankasi AS and TC Ziraat Bankasi AS. The fund also has shares in Turkish Airlines and the local stock exchange in its portfolio.